MSI Press Blog

  When a $3.34 Deposit Means More Than It Looks Most authors have received a royalty statement that made them laugh — not because it was large, but because it was tiny. A few dollars. A few cents. A number so small it feels almost absurd. But those tiny deposits are messages in a bottle. They say: Someone found your book. Someone cared enough to buy it. Someone spent time with your words. In an industry obsessed with launches, lists, and metrics, it’s easy to forget that books live slow, wandering lives. They travel through time. They find readers long after we’ve stopped tracking them. And sometimes they send back a little signal, a quiet acknowledgment that the work still matters to someone. A $3.34 royalty isn’t a paycheck. It’s a whisper: I reached someone. And for many authors, that whisper is worth more than the number on the statement.T hese Tuesday talks reflect real discussions between the management of MSI Press LLC and our own authors or those would-be authors ...

  Understanding royalties is one of the most important—and most misunderstood—parts of publishing. The numbers look simple on paper, but the basis on which they’re calculated can dramatically change what an author actually earns. Below is a clear, practical overview of what’s typical, what’s fair, and how to protect yourself from the “hidden math” of net‑based royalties. 1. The Two Royalty Models: List vs. Net Royalties on List (Cover Price, MSRP) Calculated on the book’s full retail price Transparent and predictable Example: 10% of a $20 hardcover = $2 per copy Royalties on Net (Net Receipts) Calculated on what the publisher actually receives after retailer discounts and other deductions Retailer discounts are typically 40–55% A “10% royalty” on net often yields far less than a “10% royalty” on list “Net” may include deductions such as freight, warehousing, marketing fees, and returns Which Is Better? List‑based royalties are almost always better for authors Ne...

  Authors frequently confuse LIST and NET and, in this way, end up with contracts that pay lower royalties when they believe that they are getting a good deal. Often, they cannot negotiate in ways that benefit themselves because they do not understand this difference and its significance. Let's break this down. List refers to the retail price of the book. Payment on list means a percentage of the retail price of the book. If royalties are 8% of list (5-8% is typical), then on a $10 book, royalties would be 80 cents; if they are 10%, royalties are $1, on every book sold. Easy to calculate, easy to predict income, and always standardized, no surprises or overestimations. Net refers to what is leftover after expenses. Gross revenue gets adjusted by a number of expenses: printing costs, printer set-up fees, shipping costs, handling fees, distributor percentage of sales (typically, 40%-55% per book), distributors' initial and continuing catalogue listing costs (without which online ...